Hoa Phat Group achieved 92% of its annual profit target in three quarters

15/10/2024 08:00

In the third quarter of 2024, Hoa Phat Group recorded an after-tax profit of over VND3 trillion, reflecting a 51% increase from the same period last year (VND2 trillion). For the first nine months of the year, the group reported an after-tax profit of VND9.2 trillion, a remarkable 140% rise compared to the same period last year. The steel and related products sector was the primary driver of this success, contributing 85% of the profit, followed closely by the agricultural sector.

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Hoa Phat Group achieved 92% of its annual profit target in three quarters

In terms of revenue, Hoa Phat Group generated over VND34 trillion in the third quarter, marking a 19% increase from VND28.7 trillion in the previous year. For the first nine months of the year, total revenue surpassed VND105 trillion (over US$4 billion), up 23% from VND85.4 trillion last year, thereby fulfilling 75% of the 2024 revenue plan. The group contributed VND10 trillion to the State budget in the first nine months of 2024, exceeding the total for the entire year of 2023.

The growth in sales revenue and improved profit margins in sectors like steel and agriculture significantly boosted the group's overall profits. Specifically, profits from the steel sector increased by 42%, while profits from the agriculture sector rose by 80% year-on-year. The industrial park infrastructure leasing sector maintained a stable profit margin of 39%.

In the third quarter, production of construction and high-quality steel reached nearly 1.1 million tons, down 14% from the previous quarter (1.27 million tons). However, the group continues to lead the domestic construction steel market with a 38% share. Hot rolled coil steel production remained stable at 738,000 tons, consistent with the second quarter.

During the first nine months of 2024, Hoa Phat Group produced 6.4 million tons of crude steel, representing a 34% increase compared to the same period in 2023. Total sales of various steel products (excluding steel pipes and galvanized steel) reached 6.1 million tons, up 32%, with construction and high-quality steel contributing 3.3 million tons, a 29% increase. Production of hot rolled coil (HRC) reached 2.27 million tons, while steel billets totaled 505,000 tons. For downstream products, steel pipe production reached 503,000 tons, up 3% year-on-year, and Hoa Phat Steel achieved an output of 344,000 tons, up 43% compared to the same period last year, surpassing the total output for 2023 (329,000 tons).

Hoa Phat has maintained its leadership position in the clean chicken egg and commercial pork markets. Additionally, the group's household appliances division launched a range of new products. Continued investments are being made to expand existing industrial parks in Hung Yen and Ha Nam provinces, enhancing the available land and technical infrastructure to meet the investment and production needs of both domestic and foreign enterprises.

The group is currently focused on advancing the Hoa Phat Dung Quat 2 Iron and Steel Production Complex project, which will have an annual capacity of 5.6 million tons of hot rolled coil steel. According to the current timeline, Phase 1 is expected to yield its first hot test product by the end of 2024.

Aligning its growth with community interests, Hoa Phat has actively engaged in various charitable and social initiatives over the past nine months. Notable efforts include supporting the construction of 1,500 houses for those in need, sponsoring new school constructions, and providing assistance to orphans and children with congenital heart disease.

                                                                                   HPG News

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